Retail sector outlook ‘positive’ on growth potential: Aljazira Capital

Aljazira Capital has adopted a positive outlook for the Saudi retail sector, based on the expectation of strong growth, expansions, and the possible inclusion of eight companies into the MSCI Emerging Markets Index.

Non-recurring profit seen by retailers in Q1-2015 is expected to weigh on growth rates in the second and third quarter results.

The investment arm of Bank Aljazira maintained an “overweight” rating on Fawaz Abdulaziz Alhokair Co. (Alhokair) and maintained its target price on the stock at SAR 121.7.

Aljazira Capital also revised its rating on Jarir Marketing Co. (Jarir) to “neutral” and kept the share target price at SAR 236.6.

The brokerage firm also re-affirmed its “overweight” rating on Al Khaleej Training and Education Co. and left its target price unchanged at SAR 64.75.

Shares of Abdullah Al Othaim Markets Co. (Al Othaim) were upgraded to “overweight,” while the company’s stock target price was revised to SAR 120.8.